What will be the after-effects of the new regulations?
Last week, Finance Magnates broke the news that the Securities Commission of The Bahamas will be implementing a range of new regulations, including leverage restrictions and placing a ban on binary options trading for retail traders.
In particular, the regulator will be implementing leverage restrictions of 200:1, and impose marketing restrictions, which will limit cold calling and other aggressive marketing tactics, among other measures.
The implementation of these regulations comes after a boom for the CFD trading space in The Bahamas, as traders fled jurisdictions with tighter regulation, such as in Europe, in search of better trading conditions. This has been a benefit for the country, which is heavily reliant on tourism, in terms of economic diversification and jobs.
With this in mind, what type of after-effects might these new regulations have? Will The Bahamas still be a go-to destination for traders and brokers in search of higher leverage, or will it change the role the country plays within the global FX market? Read more >>